F&I Management & Training

Lloyds Banking Group is introducing a new car-loans service that it claims Is an industry first.

The new product will allow banking customers to pre-arrange secured motor finance by completing an application online. Once they’ve chosen a car, they can then transfer the money to the selling retailer.

Initially, customers who bank via the Internet with the Halifax will use the service to buy used vehicles. However, Lloyds intends to widen its use to all its personal customers and also new vehicles. Called Halifax Car Plan Extra, the package offers hire purchase and PCP repayment schemes on deals between £3000 and £60,000.

For those with the best credit records, interest will be as little as 3.6%, which betters many retailer schemes. According to the Financial Times, no major High-St bank offers a comparable scheme at present (operating entirely online and offering secured loans).

Lloyds is dominant in UK retail banking, where it holds a quarter of all current account volume. However, in car finance is estimates that it currently has only 12% of the market – so this launch is intended to boost its presence in the sector.

DATED: 18.03.15

FEED: ARN